The Cruise Turnaround facility being built on Princes Parade, Liverpool

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JOE ANDERSON pledged Liverpool would have the best cruise terminal in Britain today – as he suggested an £8.8m payback demanded by the government would be handed over within months.

The Mayor of Liverpool said he was confident the city council would make a lump-sum payment, rather than face a bill of £12.6m – nearly 50% higher – by phasing repayments over up to 15 years.

And he vowed the start of “turnaround” cruises next week would be just the start, saying: "We are going to build a terminal that will be the envy of other ports."

Mayor Anderson spoke after the department for transport (Dft) finally revealed the bill for its agreement to lift the ban on launching cruises from Pier Head.

Ministers accepted two options – £8.6m upfront, or £12.6m over 15 years including interest – recommended by an independent assessor.

The amounts are significantly more than the £5.3m Liverpool City Council originally offered to repay, a sum the Dft ruled was "insufficient", in January.

Nevertheless, Mayor Anderson, asked if a lump-sum payment was possible, said: "I'm confident we will be able to do that, rather than pay the additional £4m. We will pay it back as quickly as we can, rather than stretch it out."

To make the lump-sum payment, the city council will need to inform the Dft of its intention within a week or so and hand over the full £8.8m within a matter of months.

The agreement will still need to be rubber-stamped by the European Commission.

Mike Penning, the shipping minister, told the ECHO: "I'm really very confident that this will pass state aid laws, otherwise I would not have announced it."

The minister also predicted that threats of a judicial review, made by the Port of Southampton and others, would now be dropped.

Mr Penning said; "If someone wants to challenge it, then that's up to them. However, I'm confident it cannot be judicially reviewed and I expect their legal advice will be very similar to mine."

The announcement came exactly one week before the 17,500 gross ton Ocean Countess is due to launch Liverpool's first “turnaround” cruise in 40 years, the first of 12 visits by the liner this year – each tipped to deliver a £1m economic boost.

A temporary building has been leased until 2015, to provide check in, baggage drop, customs and border facilities, and a new road has been built.

Mayor Anderson said the council planned to build more than one berth at Pier Head, adding: "We are a maritime city that people want to visit."